AIM 2006: Flash Results. 2007 Predictions

Today’s FT carried a carried a short piece confirming the likely outturn for AIM in 2006.

The headlines are:

New Companies – 432

IPOs – 261

Money Raised – $26bn (£14bn)

Money Growth Over Last Year - 54%

At the same time, the New York Times carried an article confirming what aim4tech has been predicting for months, namely that 2007 will see a flood of US companies making their IPO debut on AIM.

The Times cited the NVCA Annual Predictions Survey released on Monday, the relevant piece of which said:

More than half of VCs surveyed (57 percent) believe there will be a greater propensity for U.S. venture-backed companies to consider overseas IPOs next year.

Sadly, the continuing state of denial within the US VC community reared its ugly head again when the President of the NVCA - Mark Heesen - was quoted as saying:

"Is AIM basically going to be the pink sheets of Europe, or really be an exchange?"

I note that Mark has been in the job since 1991; for most of which period Nasdaq ruled the world. But, as a voice of experience from the Old Empire, I can confirm that change is always inevitable - and denial is the curse of opportunity!

Now, last time I looked (August) there were around 250 tech companies on the OTCC with a combined market cap in the region of $10bn.

Which puts AIM into context. Or, put less politely:

which bit about the $26bn does Mark not get?

But that's a subject for another day.

For today, I'll settle for the following from David Blackwell of the Financial Times:

"the statistics for the full year will show that much of the negative publicity surrounding Aim for the past six months should be discounted. For it has notched up another record year"

And from Dixon Doll, founding general partner with DCM Doll Capital Management who, in the context of American companies seeking an IPO abroad, said in the New York Times:

"The only realistic scenario is a U.S. company doing a listing on AIM or on the London Stock Exchange "

Amen! I'll drink to realistic scenarios!

Here's wishing you a really prosperous 2007!